“Biden-McCarthy” negotiations end but no agreement on debt ceiling Move forward to find common ground to avoid defaulting on debt.
On May 23, 2566, Reuters reported that US President Joe Biden and US House Speaker Kevin McCarthy No agreement could be reached Monday on how to raise the US government debt ceiling to $31.4 trillion. within just 10 days before default occurs This could sink the US economy.
Democratic presidents and top congressional Republicans have struggled to come to an agreement. That's because McCarthy has pressured the White House to agree to federal budget cuts that Biden views as extreme. And the president levied new taxes that Republicans rejected.
However, both sides stressed the need to avoid default with a bilateral agreement after a meeting on Monday evening. and signaled that they would talk regularly in the coming days.
A source familiar with the situation said White House negotiators were returning to Capitol Hill on Monday night to continue negotiations.
“We reiterate that default is off the table. And the only way forward is through good faith, bipartisan agreement,” Biden said in a statement after the meeting. which he called productive
McCarthy told reporters after speaking with Biden. For more than an hour, negotiators were about to gather and work through the night to try to find common ground.
Democrats and Republicans have until June 1 to increase the government's borrowing limit. Or trigger defaults that economists warn could lead to a recession. On Monday, Treasury Secretary Janet Yellen offered a reminder of how little time is left. It said the earliest expected default date is still June 1, and it is highly likely that the Treasury will no longer be able to pay all of the government's obligations by early June. If the debt ceiling does not increase
Any agreement to raise the cap must pass both chambers of Congress. So it depends on bipartisan support. McCarthy's Republicans control the House 222-213, while Biden's Democrats control the Senate 51-49, where failure to raise the debt ceiling would trigger default. This will destabilize financial markets and push interest rates higher on everything.
